Canadian Tire (CTC) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong results with normalized diluted EPS up 10.4% to $3.94 and reported EPS at $3.65, driven by higher net income, lower share count, and operational agility amid soft consumer sentiment and challenging weather.

• Strategic focus on loyalty, digital, and new store concepts, including AI-powered customer insights and expanded partnerships, drove outperformance, especially at Mark's and SportChek.

• Value-driven strategies included over 5,000 price drops and expanded personalized loyalty offers, boosting Triangle loyalty sales by 3.5%.

• E-commerce sales grew 14% year-over-year, outpacing bricks-and-mortar, supported by digital harmonization and free shipping for loyalty members.

• The True North strategy advanced with increased loyalty engagement, digital integration, and new store concepts.

Financial highlights

• Q2 2026 consolidated revenue rose 2.4% year-over-year to $4,302.9M; retail sales (excluding petroleum) up 2.5%; overall comparable sales up 0.7%.

• Net income from continuing operations increased 13.8% to $214.2M; diluted normalized EPS was $3.94, up 10% year-over-year.

• Retail IBT up 1.2% to $201 million; normalized retail EBITDA up 2.2% to $498 million; EBITDA for Q2 2026 was $547.1M, up 6.3%.

• Retail ROIC improved 80 bps to 11.1% year-over-year.

• Retail SG&A was $769.2 million, down 1.3% year-over-year; SG&A as a percentage of revenue (ex-petroleum) stable at 23.3%.

Outlook and guidance

• Early Q3 sales growth observed as weather normalized; planning for growth in the back half of the year on a 52-week basis.

• CapEx for 2026 guided to $450–500 million, revised down from $500–550 million, reflecting timing shifts and capital discipline.

• Expect some moderation at SportChek as it cycles strong prior-year events; margin rate target of 35%+ maintained despite Q3 headwinds from fuel surcharges.

• The Triangle Rewards program will add a fourth partner in fall 2026, expanding member engagement.

• Continued rollout of new store concepts and Destination Sport stores planned for the second half of 2026 and into 2027.